Impact of Corporate Activity: Could Corporations Benefit Individuals in Developing Economies?

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2008
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Haverford College. Department of Economics
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Award
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eng
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Haverford users only
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Abstract
Discourses on globalization and transnational corporations are divided. One school of thought supports corporate activities in improving a state, while another stands against corporations, hoping to protect developing states from corporate misdeeds. This paper examines the impact of foreign direct investment (FDI) on literacy level. It takes two methods, one using a data set with many variables affecting literacy, but only for the period from 1999 to 2003. Another data set for the period from 1980 to 2003 is also utilized, particularly to evaluate within-country effect of FDI. From regression analysis on both data sets, the paper finds the positive impact on literacy in developing countries and concludes that it might not be so useful to protest against corporations’ presence in developing countries, but what is more important is to find ways in which developing countries can benefit from their activities.
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